16 posts categorized "Poll"

Tuesday, November 04, 2014

Most of us won't vote on tax-related ballot initiatives today, but taxes still will guide our choices, according to a recent poll.

Public Opinion Strategies' (POS) national pre-election survey found that tax reform is a major concern for most voters.

Overall, the Alexandria, Virginia-based political and public affairs research firm found that economic issues will be a deciding factor in how people vote today.

Nearly all voters (96 percent) say economic issues are important to their vote. Almost three-quarters (74 percent) classify economic issues as "extremely" or "very important" in determining how they will cast their ballots.

That sentiment was expressed by a solid majority of Democratic, Republican and Independent respondents.

Narrowing the economic issue down a bit, taxes also are getting a lot of voter attention.

POS pollsters asked the 800 likely voters it talked to via telephone between Oct. 30 and Nov. 2 to rank seven different options Congress could consider to help create jobs and improve the economy.

Simplifying the tax code won. More understandable, accessible tax laws were supported by more than eight out of 10 voters, with 62 percent strongly favoring a tax law revamp.

Cutting federal spending came in second with 74 percent overall approval.

Do these findings mesh with your Election Day and federal legislative concerns?

Because Ted and Heidi Nelson Cruz and the hubby and I have workplace-provided medical insurance, we get a chance in the coming weeks to decide exactly what type of coverage and other related workplace benefits we want for the coming year.

Like many employer-provided plans, our options are part of a cafeteria plan, so named because they allow employees to select benefits from a menu of offerings.

Among those menu items are flexible spending accounts, or FSAs. With these accounts you can set aside pre-tax dollars to cover out-of-pocket medical and
dependent (usually child) care costs.

Tax savings benefits option: Note the pre-tax reference.

The amount of money you decide to contribute to either account -- and yes, you can have both, but they are separate; you can't transfer money between medical and child care FSAs -- is automatically taken out of your paycheck before your tax withholding is calculated.

This includes not only federal and state income taxes, but also your FICA -- that's the Social Security and Medicare payroll tax -- amounts.

Child care accounts are limited to $5,000. This annual cap for dependent care FSAs is for the whole family. So even if you and your spouse each have the option to open a child care FSA, your combined contributions cannot exceed five grand.

There's also a limit on medical FSAs. The $2,500 cap was added beginning this tax year as part of the Affordable Care Act, popularly -- or derisively if you're a Republican and/or are having trouble with the online insurance exchanges -- as Obamacare.

So if you're considering an FSA during this open enrollment period, carefully calculate the amount of money you expect to need to cover co-pays, deductibles and treatments that your health care plan doesn't cover.

That's what the hubby and I (and presumably the Cruz family) will be doing over the next few weeks.

The health care reform law's insurance coverage exchanges opened today and despite some expected first-day glitches, people are signing up. In fact, some of the problems today are from too many people wanting to get coverage.

Days vs. weeks: So what's next?

Best case scenario is that an agreement, at least one
for a month or two, is hammered out in the next few days.

Most of the IRS is closed: The Internal Revenue Service has put its contingency plan into effect.

The agency also sent out an email to tax practitioners today, noting that, "Due to the current lapse in appropriations, IRS operations are limited. However, the underlying tax law remains in effect, and all taxpayers should continue to meet their tax obligations as normal."

And while everyone on Capitol Hill is catching heat, the GOP is faring the worst.

Quinnipiac pollsters found that most respondents, 55 percent, blame gridlock in Washington on Republican legislators who are determined to block any Obama initiative. Thirty-three percent say the problem is because of Obama's lack of skill.

In another question, 28 percent of voters blame Republicans for gridlock, while 10 percent blame Democrats and 58 percent blame both equally.

Please let me and the ol' blog's readers know what you think, too. Take the poll below and elaborate on the shutdown in the comments section. Be warned, though. I have final say over what gets posted and simply name-calling won't cut it.

Monday, August 27, 2012

The core of the Romney campaign is to focus on how he would revive the sluggish economy.

But based on some recent national polls, Romney might want to keep his vice presidential choice, Paul Ryan, out of the spotlight in discussing economic issues.

Ryan has been a U.S. Representative since 1999. During his almost 14 years in Congress, Ryan has moved up the Republican leadership ranks. He currently serves on the tax-writing Ways and Means Committee and chairs the House Budget Committee.

And it's Congress, where Ryan now is a fixture, that most middle-class Americans blame for their economic woes.

Middle-class woes are Congress' fault: "Since 2000, the middle class has shrunk in size, fallen backward in
income and wealth and shed some -- but by no means all -- of its
characteristic faith in the future," according to the Pew Research Center.

The Washington, D.C.-based think tank recently surveyed 1,287 adults who describe themselves as part of the declining middle class.

Eighty-five percent of those they asked said it is more difficult now than it was a decade ago for middle-class people to maintain their standard of living

And who do they think is responsible for this decade of decline? Most point the finger squarely at Congress.

Poll respondents were asked to rank each choice separately as to whether they blamed each "a little" or, as shown above, "a lot" for their economic difficulties. (Graph by Kay Bell)

Coming in second in the economic blame game, 8 points behind Capitol Hill lawmakers, are banks and other financial institutions.

That's not surprising since so many folks have had issues with the way their mortgage loans and, in many cases, their subsequent foreclosures were handled.

Rounding out the to-blame bunch, in order of responsibility they bear according to the Pew survey, are large corporations (another possible political pothole for Romney to watch out for), the George W. Bush administration, foreign competition (one more Romney alert) and the Obama administration (bad news for the Democrats).

Just 8 percent of those asked blame the middle class itself for their economic problems.

This gloomy economic view comes at the end of a decade in which, for the first time since the end of World War II, mean family incomes declined for Americans in all income tiers, say Pew researchers.

But the middle-income tier, defined in this latest Pew Research analysis as all adults whose annual household income is two-thirds to double the national median, is the only one that also shrunk in size.

That decline of the middle class, says Pew Research, is a trend that has continued over the past four decades.

This ties Capitol Hill lawmakers' previous lowest approval ranking by WSJ/NBC pollsters set back in October
2008.

Remember then? That's when Uncle Sam was hammering out the details of buying the aforementioned troubled bank assets and the country was plunging headlong headed into the economic crisis from which it's still struggling to exit.

Asked another way, the poll found that another 82 percent said they disapprove of the job Congress is doing. The WSJ/NBC News poll has been asking this question since 1990.

That figure tied the Gallup result from last February as the lowest opinion of Congress in the polling firm's 38-year history
of asking Americans to evaluate Congressional actions.

Similar to the news organizations' poll, Gallup found that 83 percent disapprove of the way Congress is
doing its job.

The only very, very tiny bit of good news for the current crop of Senators and Representatives is that these latest poll numbers are still a bit better than those in a November 2011 poll by the New York Times and CBS News. That public sentiment survey recorded a mere 9 percent approval rating for Congress.

Still, given the American public's current disdain of Congress, Paul Ryan might not want to talk about all the years he's been on Capitol Hill.

Once elected, legislative policy often is shaped to some (large) degree by which side has the higher percentage of public support.

But when it comes to taxes, the answer is pretty consistent. We tend not to like them.

We may accept that we need them to pay for government programs we like. During the ongoing budget deficit debate, Obama has cited polls indicating that most Americans want a plan that includes both spending cuts and tax increases.

But that doesn't mean we have to like them.

This attitude is nothing new.

An American Enterprise Institute study took a look at public opinion on taxes, using data from 1937 to today to compile "the most comprehensive collection of polls ever compiled on the subject of taxes."

The bottom line? Karlyn Bowman, AIE Resident Fellow, and her research assistant Andrew Rugg, found that:

In seventy years of surveys, we can find no instance in which more than a tiny percentage of Americans said the amount they paid in taxes was too low. In most polls, pluralities or majorities say the amount is too high. But there have been a few instances recently, where a plurality has said the amount they paid in federal income tax was "about right." In 2009 Gallup data, for example, 46 percent said the amount they paid was too high and 48 percent said they paid about the right amount. In 2010, 48 percent said they paid too much and 45 percent about the right amount.

Although the question isn't asked regularly, surveys suggest that the local property tax is now seen as more onerous than the federal income tax. Thirty-six percent in February-March 2003 told Kaiser/NPR/Harvard that local property tax was the tax they disliked the most, followed by 29 percent who chose the income tax. Gallup shows a substantial jump since the late 1980s in the proportion of people mentioning the local property tax as the worst or least fair tax. In their April 2005 poll, 42 percent gave that response. Twenty percent said the federal income tax was the worst tax.

Other tax poll findings included:

Forty-eight percent say the federal income taxes they pay are too high, while 45 say they are about right. Only 3 percent say they are too low.

Polls in late fall 2010 showed the public split on which party could better handle taxes. A new late March-early April 2011 NBC/Wall Street Journal poll shows the Republicans with a 2-point advantage on the issue.

Sixty-eight percent in a new AP-GfK Roper poll said "taxes" are an extremely or very important issue to them, ranking far behind such issues as the economy and gas prices. Forty-seven percent approve of the way President Obama is handling the tax issue, 52 percent disapprove.

Although Americans' preference was to not extend the Bush tax cut for those making $250,000 or more, the public supported the December tax cut compromise that extended that tax break.

In other areas, the AEI study found that public opinion has been stable, with many Americans agreeing that the tax system needs major reforms.

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Saturday, May 09, 2009

More than 90 million tax returns were filed electronically through April 24, according to the IRS. As has been the trend over the last few years, more individuals in 2009 opted to electronically file their returns on their own.

In fact, that segment of filers hit a record this year. For the first time, says the tax agency, more than 30 million individual income tax
returns were filed from home computers. That's a 19 percent jump over last year.

As the math indicates, that means around 60 million taxpayers turned to tax pros to complete and then e-file their returns. That figure is essentially the same as last filing season.

E-filing to get refunds faster: One of the main reasons for e-filing is the speed at which refunds are issued. This year the hubby and I e-filed our Form 1040 on April 15. Our refund showed up in our bank account on April 23. Not too shabby.

Put it into a short-term savings instrument.Added to my retirement account.Invested in stocks, bonds, etc.Helped the economy by spending it.Deposited it in my, or a family member's, college fund.Refund? What's that?I haven't filed my 1040 yet.Other. Please elaborate by adding a comment.

Saturday, March 28, 2009

If you're like the folks who participated in a recent CCH CompleteTax survey, you're concerned that you might be making costly mistakes or overlooking tax-saving breaks.

Such worries could be well-founded. The poll of around 1,000 adults, commissioned by CCH and conducted by GfK Roper, also found that most people do not know which tax breaks offer the greatest benefits.

Nearly two in three, or 66 percent, of taxpayers fear they may overlook tax breaks or make mistakes that could cost them in fines or penalties.

When it comes to a federal income tax return,which are you most concerned about?

Best tax break confusion: At the same time, most of the polled taxpayers were unable to determine which tax breaks, when given a choice of ones affecting a particular tax area such as those related to children, were most beneficial. For example:

Less than one-fourth could identify that tax credits are generally more advantageous than deductions;

Only about one-third identified the child-related tax break offering the greatest savings; and

Less than one-half identified the education-related tax break offering the greatest savings.

That credit vs. deduction confusion astounds me. Maybe it's just because I preach it all the time. But I'll say it here once again:

A tax credit is generally more advantageous than a tax deduction of the same value.

Retirement saving hesitation: Another question that caught my eye deals with retirement planning. Only about half of the surveyed taxpayers said they plan to contribute to tax-advantaged retirement plans this year.

For 2009, which best describeshow you will be contributingto tax-advantaged retirement accounts?

Of those planning to contribute, 30 percent said they will put in about the same amount they did last year. Thirteen percent said they will contribute more and 8 percent plan to contribute less than they did in 2008.

Given how the market nosedived earlier this year, that trepidation is not
that surprising. But you don't have to put your nest egg in stocks. You
can opt for less volatile savings options. The key, though, is to keep
your plan in place and, when practical, keep adding to it.

David Bergstein, CPA and a tax analyst for the online tax
preparation and e-filing service CCH CompleteTax, agrees.

"Many people have immediate demands on their finances given the economy, but they should also try to save as much as they can for retirement. Using the available tax benefits offered for IRAs, 401(k)s and other retirement accounts means more money being set aside for retirement and less being paid in taxes," said Bergstein.

Check out the complete CCH survey results. Do they reflect the ones you have? Inquiring minds want to know, so please share by leaving a comment below.

Tuesday, October 21, 2008

I accidentally looked at a third quarter statement for one of my retirement accounts last week. Its value had dropped just 11 percent. If you'd told me a year ago that I'd be OK with a loss in value of "just 11 percent" on any investment, I'd have called you crazy.

But crazy is what the market has been. And crazy is how many folks have been acting regarding their investments.

Now, however, it looks like we might be in for a break. There are some indications that global markets are stabilizing a bit as investors digest steps taken to deal with the credit crisis.

Don't Mess With Taxes readers apparently were ahead of the chill curve. Last week, we asked, How are you dealing with the stock market meltdown?

A whopping 80 percent of respondents indicated they were staying their investment course. Here's the breakdown:

44% said: I have a regular investment program and I'm sticking with it24% said: I'm buying bargains.12% said: I'm leaving current holdings alone, but not investing new money.9% said: I bailed out and put my money into FDIC-insured instruments. 9% said: I'm ignoring it, hoping the market will eventually work itself out.2% said: I'm taking other approaches.

401(k) tips: My investment account that lost just 11 percent of its value is one that began as a 401(k). These tax-advantaged workplace retirement plans are major components of many individual investment portfolios.

So it seemed appropriate, to borrow a word that Fed Chief Ben Bernanke used in discussing another round of rebates, to look at some 401(k) do's and don'ts.

Do participateFor most workers, 401(k)s are their primary retirement savings vehicle. Unfortunately, most workers aren't making the most of these plans. In fact, some studies show that as many as one-quarter of eligible workers choose not to participate in their company's 401(k) plan.

I know that sometimes it feels like you need every last dollar of your pay. But seriously consider putting at least a minimal amount into a 401(k). Your contribution comes out of your pay before taxes are deducted, so that's a bit of a saving upfront. And you might be surprised as to how quickly you can adjust to that "missing" amount, which actually is making more money in the long-term for you.

Do contribute enough to get a matchMany companies match their employees' contributions up to a certain amount. A typical match is 50 cents on your dollar up to 6 percent, giving you an added 3 percent of money to grow tax-deferred. That's an immediate 50 percent return. So as soon as you can, up your contribution level so that you get the maximum match from your boss.

Do your homework before signing upEven when employees do participate in their company 401(k)s, too often they invest in a way that doesn't make sense. For example, a young employee who can afford to take some risks because she has a longer investment time line, might invest too conservatively. Meanwhile, an older worker has put his retirement money at too much risk by selecting a plan with volatile stocks.

Before selecting your 401(k) option, assess your other investments and how this will fit in with your overall strategy. Carefully examine the various options available. And talk with your plan administrator if you have questions about the company's offerings. Some companies now offer added guidance, thanks to the Pension Protection Act of 2006, which enables plan sponsors to offer investment advice to employees.

Don't over invest in your employerRemember Enron? Thousands of that company's workers thought that their employer's stock was their best retirement bet. It's usually not, even when a company is in good shape. You need to stay diversified; you're already getting a paycheck, so look at other options for your 401(k). Even when the company stock is a great investment, you don't want your portfolio (or life) dominated by one stock.

Don't borrow from your planYour 401(k) is a retirement savings vehicle, not a revolving credit account. So don't borrow from your account unless it's a dire emergency. True, you'll pay yourself back, but by taking some money out, you lose the earnings it would have produced and you'll likely never recover them. Plus, if you leave your job while you're still paying back your 401(k) loan, you could be asked to settle the loan as soon as you leave. If you don't repay it, the loan balance will be treated as a distribution, which leads us to our next tip.

Don't take early distributionsIn most cases, if you take funds from your 401(k) plan before you are 59½, you must pay a penalty of 10 percent additional tax on the withdrawal.

Do roll it overEarly, and costly, distributions commonly occur when folks change jobs. They take their 401(k)s with them, which is a good idea, but they do so the wrong way. Don't have your former employer give you the account funds. Instead, have your 401(k) rolled directly into a plan at your new job. This trustee-to-trustee transfer will keep you from facing potential tax penalties.

What if your new employer doesn't have a 401(k) program? Don't worry. You can roll your old 401(k) into an IRA.

Daily Tax Tip

Did you miss a daily tip posted above? No worries. They're collected in the 2015 Daily Tax Tips pages, one for each month of the filing season: January, February, March and, coming soon, April. And stay tuned for Weekly Tax Tips, coming after we survive the April 15 filing deadline!

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Time for Tax Tasks

March 1: It's March, the last full month of tax-filing season. Are you attacking your tax return like a lion? Or have the Internal Revenue Code's complexities turned you into a tax lamb?

Either way, you're at the right place. The following tax tips are for filers regardless of March animal avatars.

If so and you received $20 in tips in February, use Form 4070 to report them today to your employer. And don't forget to include the value of atypical tips.

March 16: Business filers generally beware the Ides of March because the 15th day of this month also is the corporate tax filing deadline, which can be dangerous to a company's bottom line. This year, however, the deadline day was on a Sunday, meaning that business taxpayers must file and pay any due tax by today.

March 17: It's St. Patrick's Day! But don't trust lucky charms to get you through a tax audit. Be prepared by, among other things, making sure you have sufficient documentation for all your tax claims and hiring a tax pro with audit defense experience to guide you through the process.

March 20: Spring has sprung! Not only is it time to finally welcome warmer weather, any spring cleaning also could pay off on your 2015 tax return. Get rid of all your unnecessary household items and clothes that no longer fit by donating them to your favorite nonprofit. You can claim the value as an itemized charitable deduction.

March 25: If you celebrated your 70½ birthday last year (and who doesn't have parties for half birthdays?) and didn't take money out of your tax-deferred retirement accounts by the end of 2014, you must make a specified withdrawal by April 1. No joke. These required minimum distributions, or RMDs, are Uncle Sam's way of finally getting his piece of your traditional IRA, workplace 401(k) or self-employed retirement plan pie.

March 31: You've put the finishing touches on your 1040 and are finally ready to file. Wait! Take one quick review of your forms to ensure you haven't overlooked any tax breaks or made any common tax mistakes. All's good? Then drop your return in the snail mail box or hit enter to e-file.

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Keep Uncle Sam cranky!

It's no wonder Uncle Sam is not very happy here. His vault is empty. Don't Mess With Taxes aims to keep him cranky by providing tax and personal finance tips and advice that will put more money in your bank account, not the government treasury.

I gotta tell ya ...

AKA Disclaimer:

I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer. The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation of any specific tax action(s) you should take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax professional who is familiar with your individual tax circumstances.

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